Energy prices

Key points

• The analysis by the Commission shows that the most intensive impact on the energy price rally comes from the sharp global increase in the demand for gas and was further pushed by the upward economic recovery, tightened supplies to the EU, lack of investment and seasonal weather conditions which resulted in lower production of renewables in Europe.
• The EU is on its way to deliver the 2030 climate targets that will lead us to the climate neutral economy by 2050. Besides the huge investments required by the transition, it also requires an adaptation of the whole energy ecosystem.
• The current energy price crisis would not hit European citizens and companies so hard if Europe was not so highly dependent on imports of fossil fuels. Most Members States have still not succeeded in reducing this dependency although the Commission defines this goal, amongst others such as putting the consumer at the centre of the energy system, as one of the strategic objectives for the Energy Union. In both regards, European energy policy is lagging far behind its own ambitions.